Climate Change Data

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Business Ethics
• Environmental Management
• Employee Care
• Community Participation

Environmental Achievements

• 2.2% year-on-year decrease in total energy consumption per million unit revenue
• 2.3% year-on-year decrease in emission of greenhouse gases per million unit revenue
• 108 suppliers obtained ISO 14001 Environmental Management System Certification

Social Achievements

• Launched long-term internship and apprenticeship program in Turkey
• 100% Training coverage, 173,672 training hours, 28.1 training hours per employee
• 0 work-related fatal incident

Governance Achievements

• Formally established the “Sustainability Committee” on 3 July 2020
• Female members of the Board account for 25%
• Formulated the “Internal Reporting Management System of Impro Group”

Climate Goals & Targets

Environmental Challenges

• Maintaining customer relationships
• Protecting intellectual property

Mitigation Strategies

• Established Impro global customer relationship management (CRM) system
• Established the “Intellectual Property Management System”

Supply Chain Management

Supplier Audits: Annual on-site assessment or document review

Responsible Procurement

• Supplier Code of Business Principles
• Clean Cooperation Commitment

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards (2016), United Nation’s Sustainable Development Goals (SDGs)

Certifications: ISO 14001, ISO 45001

UN Sustainable Development Goals

• Goal 3
• Goal 4
• Goal 5
• Goal 8
• Goal 9
• Goal 11
• Goal 12
• Goal 13
• Goal 17

Impro Group takes SDGs-related goals into consideration when formulating sustainable development strategies and directions, and is committed to integrating sustainable development into our daily operations.

Awards & Recognition

• Special Gold Award for Castings at the 18th China International Foundry Expo
• Contribution Award for Anti-pandemic and Supply Guarantee in 2020
• Outstanding Contribution Award presented by Jiangsu Province Foundry Association
• Supplier Quality Award of Excellence presented by GE Aviation Joint Affiliates
• Outstanding Supplier Award presented by Sany Heavy Machinery
• Caring Company award
• Social Capital Builder

Environmental Metrics

ESG Focus Areas

• Climate Change
• Resource Stewardship
• Waste Management
• Human Capital
• Health and Safety
• Stakeholder and Community Engagement
• Corporate Governance
• Supply Chain

Environmental Achievements

• Reduced GHG emission per unit revenue by 10.6%
• Reduced energy consumption per unit revenue by 11.5%
• Reduced water consumption per unit revenue by 26.1%
• Reduced wastewater emission per unit revenue by 55.0%
• Reduced non-hazardous solid waste disposal per unit revenue by 4.8%
• Achieved 2030 GHG emission, energy consumption and water consumption intensity reduction goals

Social Achievements

• Decreased employee turnover rate from 18.4% in 2022 to 13.8% in 2023
• Completed the first phase of the Mexico SLP village and refurnished staff quarters in Yixing plant
• 6,528 employees received anti-corruption training (21.7% increase)
• Total training hours reached 327,146 hours with 42.6 hours per employee on average
• Zero work-related fatality

Governance Achievements

• 94 accumulated new patents filed in 2023
• 15 plant locations conducted internal audits on business ethics
• 156 suppliers obtained ISO 14001 certification (11.4% year-on-year increase)
• Executive Compensation Linked To ESG: yes (linked to sustainability performance targets)

Climate Goals & Targets

Environmental Challenges

• Climate change (physical and transitional risks)
• Supply chain disruptions
• Higher accident rate at Mexico plant during ramp-up stage
• Increased product complaints due to Mexico plant ramp-up

Mitigation Strategies

• Implemented various energy-saving measures and renewable energy projects
• Developed alternative sourcing strategies
• Implemented safety measures at Mexico plant (daily safety inspections, weekly machine checks, PPE reviews)
• Enhanced staff training on quality, strengthened pre-shipment testing, and sent experienced quality control staff to Mexico for training

Supply Chain Management

Supplier Audits: 15 plant locations conducted internal audits; 156 suppliers with ISO 14001; 55% of target suppliers signed Sustainable Sourcing Charter/Supplier Code of Conduct

Responsible Procurement

• Supplier Environmental Notice
• Supplier Code of Conduct
• Sustainable Sourcing Charter
• Conflict Minerals Policy

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather conditions
• Sea level rise
• Increased temperatures and water scarcity

Transition Risks

• Policy changes
• Technology changes
• Market shifts

Reporting Standards

Frameworks Used: GRI Standards (2021), UN Sustainable Development Goals, HKEX ESG Reporting Guide

Certifications: ISO 14001, ISO 45001

UN Sustainable Development Goals

• Goal 3: Good Health and Well-being
• Goal 4: Quality Education
• Goal 5: Gender Equality
• Goal 8: Decent Work and Economic Growth
• Goal 9: Industry, Innovation and Infrastructure
• Goal 11: Sustainable Cities and Communities
• Goal 12: Responsible Consumption and Production
• Goal 13: Climate Action
• Goal 17: Partnerships for the Goals

Impro's initiatives contribute to these goals through various actions detailed in the report.

Sustainable Products & Innovation

• Energy-efficient products
• Components for emission reduction systems

Awards & Recognition

• Excellent ESG Enterprise (Hong Kong Economic Times)
• EcoVadis Bronze Medal
• Honeywell Aerospace Best Partnership Award
• Liebherr Aerospace Supplier Qualification Certificate
• National “Small Giant” enterprise
• NEWCAST International Casting Award